Discover how to use the Williams Fractal Indicator to identify key price levels and implement it as a breakout strategy in trending markets. Avoid using it as a reversal indicator and filter out unnecessary signals by adjusting the settings. As a bonus, combine it with the Alligator and Stochastics RSI for increased accuracy.

The Best Strategy with the Williams Fractal Indicator: Revealed!

Introduction
The Williams Fractal or Fractal is a simple yet useful indicator that can help traders identify potential price levels in the market. While it is easy to use, it can also be confusing due to the many signals it produces. In this video, we will reveal the best strategy that you can use with the Williams Fractal indicator.

Understanding the Williams Fractal Indicator
The Williams Fractal is an indicator that reveals important price levels on the market. A top fractal indicates a potential resistance level, while a bottom fractal indicates a potential support level. The Fractal determines key levels by checking if the other four candles on the sides overlap the highs or lows of the middle candle. A Fractal will only appear behind two candles after they have closed.

Using the Williams Trailing Stop Loss Indicator
The biggest problem with the Fractal indicator is that it gives too many signals, making it confusing and hard to trade. The built-in version of the Williams Fractal on Trading View does not allow changes to the settings. Instead, we recommend using the Williams Trailing Stop Loss indicator created by SimpleCrypto. With this indicator, you can actually change the range value, which reduces the number of unnecessary Fractals.

Using the Fractal as a Breakout Strategy
The most famous strategy that beginners use when trading the Fractal is by using it as a reversal indicator. However, after backtesting the strategy multiple times, it proved to be ineffective. The best way to use the Fractal is by using it as a breakout strategy. To do this, you will need to identify the long-term trend using the 200 EMA. If the price is above the 200 EMA, you take signals from the top Fractals. If the price is below the 200 EMA, you take signals from the bottom Fractals. You then wait for the closing price to break out above or below the Fractal, and then take a position accordingly.

Exit Strategy
For the exit strategy, you can place your stop loss below your entry candle, and your profit target at 1.5 times your stop loss. For example, if your stop loss is $100, your profit target should be $150.

Combining the Fractal with Alligator and Stochastics RSI
You can further enhance your trading system by combining the Fractal with the Alligator and Stochastics RSI. You first need to identify a trend using the Alligator, where all three lines are heading in the same direction and separated from each other. Once you have identified the trend, you can then look for entry signals using the Fractal and Stochastics RSI.

Conclusion: Implement the Strategy Today
In this video, we have revealed two strategies that you can immediately implement in your trading system. The Fractal indicator, when used correctly, can greatly simplify your job as a trader. Remember to invest a few seconds in liking and subscribing to our channel. Happy trading!